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Indian ETFs Fall on Widespread Corporate Reform; Plunging Rupee

  +Follow August 16, 2013 4:13PM
Tickers Mentioned:

Investors in the emerging market of India were rocked Friday, as the country plans to concomitantly rework their outdated 57-year-old corporate legislative laws and address a rapidly devaluing currency. 

India has long been plagued by corruption. Kickbacks, gift and outright fraud are commonplace, as unscrupulous players take advantage of a financial system that has failed to keep pace with an increasingly complex global economy.

In 2009, the country was rocked by a massive fraud case involving the company Satyram Computer Services. The chairman confessed to overstating company assets and earnings by over $1 billion. The scandal, often called "India's Enron," made it clear the country lacked a proper oversight body and laws sophisticated enough to deal with modern finance.

The country is simultaneously scrambling to also stabilize the rupee, which is the worst performing emerging market currency in comparison to the dollar. The Reserve Bank of India is taking action and imposing controls to increase overseas direct investments, as the diminishing value of the country’s currency has made it more difficult for Indian corporations to buy assets outside the country.

India has also had to deal with inflation and a widening current account deficit. The corporate reforms and worsening economy coupled to spook investors and trigger an ETF sell-off.

Indian ETFs across the board retreated on Aug. 16. iPath MSCI India Index (INDA) dropped 4.84 percent to hit $21.41 a share. PowerShares India ($PIN) dropped 4.64 percent to hit $15.62 a share. WisdomTree India Earnings ($EPI) fell 4.53 percent to hit $14.76 a share.

The biggest loser on the day was Direxion Daily India Bull 3X Shares ($INDL), which plummeted 12.89 percent to hit $10.72 a share amid eight times normal volume. 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for PIN
Jeremy Wilson
19 Aug 14 18:00:53
yes, $Pin the NITE
Arjun Ganjoo
19 Aug 14 14:08:21
HSBC cautious on India amid all-time highs $EPI $SCIF $INDY $PIN $INDL $INP $INXX $INDA $SCIN $SMIN http://t.co/MYh74Yu65F
19 Aug 14 12:41:40
HSBC cautious on India amid all-time highs http://t.co/Od0WEfNhZ1 $EPI $SCIF $INDY $PIN
18 Aug 14 18:01:23
weekly system began the week long $GPRE $SLXP $TRN $PIN $FB $PGJ $QQQ $IYR $TLT $VGT $VPL and 1/2 pos in $TWM...
FOREX Insight
18 Aug 14 15:33:17
RT @ETFtrends: #India ETFs Search for Traction in Home Market http://t.co/m8NfcLGeUm #emergingmarkets #ETF $SCIF $EPI $EWZ $PIN
ETF Trends
18 Aug 14 15:30:04
#India ETFs Search for Traction in Home Market http://t.co/m8NfcLGeUm #emergingmarkets #ETF $SCIF $EPI $EWZ $PIN
Tom Lydon
18 Aug 14 15:25:11
#India ETFs Search for Traction in Home Market http://t.co/baGOj2uHEI #emergingmarkets #ETF $SCIF $EPI $EWZ $PIN
18 Aug 14 08:52:28
Buy actively managed #IndiaFunds rather than #ETFs http://t.co/Fbgk4ANT1I $EPI $INDA $INDY $PIN $INDL $IFN $NII.L
18 Aug 14 08:24:12
Aberdeen CIO: #India will surpass #China for growth http://t.co/EXLeEQ3WSJ $EPI $INDA $INDY $PIN $INDL $IFN $CHN $GCH $CAF $TDF $FXI $MCHI
18 Aug 14 05:13:13
RT @SeekingAlpha: Fiscal Prudence Lost With The New Indian Budget http://t.co/Xhr9fXEyuq $EPI $INDY $PIN $INDL $INP $INXX $INDA
Seeking Alpha
18 Aug 14 04:15:24
Fiscal Prudence Lost With The New Indian Budget http://t.co/Xhr9fXEyuq $EPI $INDY $PIN $INDL $INP $INXX $INDA
16 Aug 14 01:36:37
PIN 1,147.00 Stock Charts $PIN Pantheon International Participations PLC (LSS) Last Updated: 08/16/2014 03:36: http://t.co/RIPHTwVPKY
15 Aug 14 07:47:06
#fact: Period of a set of primes - ANSWER: Given $n = gcd(n_1,n_2)$, $pin S$ and... http://t.co/4zZnqH04uu
Sheldon McIntyre
15 Aug 14 06:02:29
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Captain John
14 Aug 14 20:39:01
$EPI High relative strength continues $SCIN $PIN http://t.co/d9yW9PkoWc $SPX $SPY
Olivier Tischendorf
14 Aug 14 20:32:53
$PIN India ETF Chart Analysis: ---> http://t.co/QApfgknecC $IFN $SCIF $INDA $INDL http://t.co/BMAsg0jNJA
14 Aug 14 14:56:47
Devils in the Details, A&Rs in my emails.. Tales $pin. Just hope eye don't choke a bitch up like Sprewell!... http://t.co/mqolEXCueO
Dimitra DeFotis
14 Aug 14 10:15:33
India’s Real Estate Sizzling Again? Chicago's Sam Zell weighs in. http://t.co/iBTbVwn7Xj via @barronsonline $EPI $INDA $INDY $PIN
Mah Bizzle
14 Aug 14 07:19:08
RT @OptionsTrader31: $IBN Stellar chart in this and many other Indian plays $EPI $HDB $PIN http://t.co/RkUBNHOPF8
14 Aug 14 07:14:04
$IBN Stellar chart in this and many other Indian plays $EPI $HDB $PIN http://t.co/RkUBNHOPF8
13 Aug 14 17:49:35
Indian market still consolidating around 1 yr highs $EPI $INDY $PIN $INP
Day Trade Alerts
13 Aug 14 06:58:28
via #AlertTrade Price Action Alert $PIN - POWERSHARES INDIA #stocks #intraday http://t.co/VS8RO0UwVJ
  +Follow August 16, 2013 4:13PM



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